LKQ Corp's stock experienced a significant pre-market plunge of 6.47% on Thursday, following the release of the company's fourth-quarter and full-year financial results.
The sharp decline appears to be driven by several negative factors revealed in the company's announcements. LKQ reported a fourth-quarter adjusted earnings per share of $0.59, which fell short of the IBES estimate of $0.65. Additionally, the company provided a weak full-year organic revenue growth outlook for parts and services, projecting a range of -0.5% to 1.5%.
Further contributing to investor concerns, LKQ announced a restructuring plan that is expected to result in restructuring charges of approximately $60 to $70 million, despite generating more than $50 million in annualized cost savings. The combination of an earnings miss, subdued revenue guidance, and significant restructuring charges likely prompted the negative market reaction in pre-market trading.